The article Mark Thompson tweeted goes into a bit more depth as to what the concerns of the government agencies were.
What stands out from the article is that Kaunis Iron took it upon itself to cut their annual production from 20 million to 10 million tons. It appears the court approves of a company that is willing to compromise before being told to do so. This is exactly what Talga did by suggesting to only mine 6 months of the year in order to accommodate the Sami herding.
The favourable response Talga received from the same authorities that strongly resisted Kaunis clearly bodes well for us, especially when considering that the court still approved the Pajala mine expansion. This really is excellent news.
Translated below:
"Verdict today: The Pajala mine can be expanded
Pajala. After a long court process, Kaunis Iron receives permission to expand the mine in Pajala with two new open pits. The new permit is valid for 35 years.
The Land and Environmental Court largely follows Kaunis Iron's line in the judgment. The mining company receives permission to expand the mine with two new open pits. The permit is valid for 35 years and covers the mining of a maximum of 10 million tons of iron ore per year, the court writes in a press release.
During the court process, Kaunis Iron has faced stiff resistance from several authorities. The Swedish Environmental Protection Agency demanded that the application be rejected or linked to extensive conditions. The County Administrative Board in Norrbotten was also negative, among other things, because the experience of handling iron ore with a high sulfur content is limited in Sweden. Both critical authorities fear that the mine will affect the water quality in the area, where the Muonio river is located.
However, the court believes that the 60 conditions included in the judgment are sufficient as precautionary measures. The fact that Kaunis iron itself adjusted the annual production from 20 million to ten million tons was also important for the court choosing to allow an expanded mining operation.
"Based on that, Kaunis Iron AB has shown that the business can be allowed, but the court judges that extensive and strict conditions are required to do so," says the court's chairman, Councilor Emma Önneby in a press release.
The iron ore mine in Kaunisvaara has been a success story since it restarted in 2018 after being down since predecessor Northland's bankruptcy in 2014. Last year, Kaunis Iron's turnover was close to three billion kroner and the profit was 1.2 billion.
For the former crisis municipality Pajala, the mine has meant a boost. In October, unemployment in the municipality was 2.6 percent, together with Kiruna the lowest in Sweden.
"If you look at the number of people, you understand even better how low unemployment is. It's about 30-40 people, many of whom are far from the labor market and may not be able to get a job," says Ulrica Hammarström (S), municipal councilor in Pajala.
In two years, unemployment in the municipality has more than halved.
"Traditionally, it has been difficult to find a job in Tornedalen and eastern Norrbotten. That is not the case today. We have low unemployment and positive immigration. The mine has meant a lot to the municipality," says Ulrica Hammarström (S).
The positive effects on society are one of the factors that the court takes into account. The court has concluded that there is a so-called "overshadowing public interest", which means that the species protection dispensation can be granted. The company has also been ordered to carry out biotope improvement measures on 700 hectares of marshland near the mining area.
It is the second important judgment in the Land and Environmental Court for Kaunis Iron in 2022. In January, the company was given permission to continue with operations after a long-running and infected conflict. In that case, the Swedish Environmental Protection Agency demanded that the current permit be withdrawn."
TLG Price at posting:
$1.42 Sentiment: Buy Disclosure: Held
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